There is no doubt that Brexit is going to change many things related to the British business, including online gaming.
It is not a secret that gambling in the UK is one of the biggest industries, but the question is how is a potential exit from the European Union going to shape things here? ‘Making predictions on this topic is extremely hard’ said John Pentin, industry betting expert at bestbettingsites.online. Here are some insights that might make some speculations more realistic.
The UK has imposed the heaviest regulations on gambling market across the whole of Europe, so it is hard to believe they will run into regulation hurdles after the Brexit. All current laws on online gambling, licenses, and procedures are going to be valid after the exit as well.
The good thing is that the Gambling Act was renewed and amended in 2014, which allows all offshore gambling companies to obtain the license from the UK Gambling Commission. If a foreign operator wants to push their product into the UK market, they will be able to do it with special permission. They will also be regulated by the appropriate body from the UK.
The question of gaming tax is something completely different though. If the United Kingdom leaves the European Union without an agreement, there is a possibility for the country to fall back on World Trade Organization regulations and rules.
This could potentially create a barrier for operators outside the country from offering their services on the UK soil. Brexit could close many company doors if the gaming tax law is not adjusted properly.
Free movement of money, services, labor, and goods is ensured by the European Single Market. Arguably, this was one of the biggest reasons the UK joined the European Union in the first place. It is enhancing the economy and making many businesses much easier.
Thanks to this, many UK bookies were in a position to sell their product in EU countries without any additional taxes. However, after Brexit, this is hardly going to be available. Even if there are no changes in this field, there are going to be additional restrictions. A big number of online UK bookies are trying to act accordingly, and setting up new offices in Malta, which could allow them to continue with the business as usual.
Brexit is also opening a lot of question regarding British Overseas Territories like Gibraltar. This territory was not participating in the referendum, meaning they will cease to be a part of the EU after the UK withdraws. Gibraltar is the home of many betting companies today.
Some would name it is an unofficial capital state of online betting and casino industry. Gibraltar’s Commerce Minister, Albert Isola stated that gaming industry generates around 25% of the country’s total gross domestic product.
Gaming operators will have to face the fact they will hardly find cheaper labor after the exit. They will also have to deal with the costs of setting up new offices, taxes and trade agreements. If the costs to run the business are higher, they could potentially lower the profits for bettors?
We wouldn’t be surprised to see lower odds on popular sports or events, while promotions and welcome packages being cut to half of the current value. There are many potential snowball effects here.